(CercleFinance.com) – Swatch lost almost 4% to Zurich while Stifel announced reducing its price target on the stock from 225 to 215 Swiss francs, while confirming its ‘hold’ advice.
The analyst indicates that he has adopted a more conservative view on the outlook for the Swiss watch industry for the remainder of 2024, taking into account a larger annual decline for mainland China (representing 1/3 of global sales). band).
In this context, Stifel announces a further reduction in its earnings before interest and taxes (EBIT) forecasts for the financial years 2024 and 2025, by 4% and 6% respectively.
‘The stock is unlikely to re-rate as long as Chinese consumer trends remain weak and inflation weighs on demand from luxury-seeking Western consumers,’ the analyst concludes.
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